Question 1

It is per se illegal under the Sherman Act to set a maximum price, but not a minimum price.

Accepted Answer

A) True 
 B)False

Question 2

Widget Maker, Inc. manufactures and sells widgets. It sells widgets to Marklin of Marklin's Department Store and gives him a preference in pricing that discriminates against other retailers. Does Marklin have liability for price discrimination? Does Widget Maker, Inc. have liability for price discrimination? Explain.

Accepted Answer

Widget Maker, Inc. has liability under t

Question 3

Barb sets her prices to undercut her competitors by 20%. This is:

Accepted Answer

A)  vertical price fixing. 
B)  market allocation in restraint of competition. 
C)  no violation of the Sherman Act. 
D)  per se illegal. 
A)  vertical price fixing. 
B)  market allocation in restraint of competition. 
C)  no violation of the Sherman Act. 
D)  per se illegal.

Question 4

The principal objective of antitrust law governing mergers is to maintain competition.

Accepted Answer

A) True 
 B)False

Question 5

In tying arrangements, the courts may establish a seller's economic power by showing that:

Accepted Answer

A)  the seller occupied a dominant position in the tying market. 
B)  the seller's product enjoys an advantage not shared by its competitors in the tying market. 
C)  a substantial number of customers have accepted the tying arrangement and the sole explanation for their willingness to comply is the seller's economic power in the tying market. 
D)  All of these. 
A)  the seller occupied a dominant position in the tying market. 
B)  the seller's product enjoys an advantage not shared by its competitors in the tying market. 
C)  a substantial number of customers have accepted the tying arrangement and the sole explanation for their willingness to comply is the seller's economic power in the tying market. 
D)  All of these.

Question 6

The common law traditionally favored competition.

Accepted Answer

A) True 
 B)False

Question 7

Harry Jones at Jones Brothers Furniture Co. does not like the Bryte Lamp Co. representative, so he decided that Jones Brothers would boycott Bryte. Under the Sherman Act, this is:

Accepted Answer

A)  per se illegal. 
B)  no violation. 
C)  a tying arrangement. 
D)  vertical market allocation. 
A)  per se illegal. 
B)  no violation. 
C)  a tying arrangement. 
D)  vertical market allocation.

Question 8

The distinction between horizontal and vertical restraints often determines whether a restraint is illegal per se or should be judged by the rule of reason test.

Accepted Answer

A) True 
 B)False

Question 9

The main goal of antitrust regulation is to prevent competitive behavior among firms.

Accepted Answer

A) True 
 B)False

Question 10

The language of Section 1 of the Sherman Act prohibits every contract that restrains trade, and the courts have interpreted this prohibition literally so as to invalidate all such contracts.

Accepted Answer

A) True 
 B)False

Question 11

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

Accepted Answer

A)  unfair conduct. 
B)  concerted action. 
C)  competitive behavior. 
D)  economic advantage. 
A)  unfair conduct. 
B)  concerted action. 
C)  competitive behavior. 
D)  economic advantage.

Question 12

Which of the following remedies are available under the Sherman Act?

Accepted Answer

A)  Injunctive 
B)  Damages of four times the amount of actual loss sustained 
C)  Consequential damages 
D)  All of these 
A)  Injunctive 
B)  Damages of four times the amount of actual loss sustained 
C)  Consequential damages 
D)  All of these

Question 13

All tying arrangements are per se illegal.

Accepted Answer

A) True 
 B)False

Question 14

The 2010 guidelines regarding horizontal mergers:

Accepted Answer

A)  use a single methodology for merger analysis. 
B)  are intended to identify harmful mergers while avoiding unnecessary interference with mergers that will not be likely to affect competition. 
C)  explain that market definition is a necessary starting point of merger analysis. 
D)  reject use of the Herfindahl-Hirschman Index in quantifying market concentration. 
A)  use a single methodology for merger analysis. 
B)  are intended to identify harmful mergers while avoiding unnecessary interference with mergers that will not be likely to affect competition. 
C)  explain that market definition is a necessary starting point of merger analysis. 
D)  reject use of the Herfindahl-Hirschman Index in quantifying market concentration.

Question 15

Resulting from a Supreme Court decision, vertical territorial and customer restrictions are now illegal per se rather than being judged by the rule of reason.

Accepted Answer

A) True 
 B)False

Question 16

The Sherman Act:

Accepted Answer

A)  prohibits contracts and combinations in restraint of trade. 
B)  prohibits conspiracies in restraint of trade. 
C)  proscribes monopolization and any attempts to monopolize. 
D)  All of these. 
A)  prohibits contracts and combinations in restraint of trade. 
B)  prohibits conspiracies in restraint of trade. 
C)  proscribes monopolization and any attempts to monopolize. 
D)  All of these.

Question 17

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

Accepted Answer

A) True 
 B)False

Question 18

If a seller of a product conditions its sale upon the buyer's purchasing a second product from the seller, this is known as a:

Accepted Answer

A)  tying arrangement. 
B)  vertical boycott. 
C)  horizontal restraint. 
D)  disparagement. 
A)  tying arrangement. 
B)  vertical boycott. 
C)  horizontal restraint. 
D)  disparagement.

Question 19

Section 1 of the Sherman Act prohibits unilateral conduct.

Accepted Answer

A) True 
 B)False

Question 20

If United Widgets lowers its price to all buyers of 10 or more widgets, it is not a violation of the Robinson-Patman
Act.

Accepted Answer

A) True 
 B)False

Exam 40: Antitrust

It is per se illegal under the Sherman Act to set a maximum price, but not a minimum price.

Barb sets her prices to undercut her competitors by 20%. This is:

The principal objective of antitrust law governing mergers is to maintain competition.

In tying arrangements, the courts may establish a seller's economic power by showing that:

The common law traditionally favored competition.

Harry Jones at Jones Brothers Furniture Co. does not like the Bryte Lamp Co. representative, so he decided that Jones Brothers would boycott Bryte. Under the Sherman Act, this is:

The distinction between horizontal and vertical restraints often determines whether a restraint is illegal per se or should be judged by the rule of reason test.

The main goal of antitrust regulation is to prevent competitive behavior among firms.

The language of Section 1 of the Sherman Act prohibits every contract that restrains trade, and the courts have interpreted this prohibition literally so as to invalidate all such contracts.

In order for there to be a violation of Section 2 of the Sherman Act, in addition to monopoly power, the courts must find:

Which of the following remedies are available under the Sherman Act?

All tying arrangements are per se illegal.

The 2010 guidelines regarding horizontal mergers:

Resulting from a Supreme Court decision, vertical territorial and customer restrictions are now illegal per se rather than being judged by the rule of reason.

The Sherman Act:

The "rule of reason" requires the courts to balance the anticompetitive effects of behavior in restraint of trade with its positive effects on competition.

If a seller of a product conditions its sale upon the buyer's purchasing a second product from the seller, this is known as a:

Section 1 of the Sherman Act prohibits unilateral conduct.

If United Widgets lowers its price to all buyers of 10 or more widgets, it is not a violation of the Robinson-Patman Act.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

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